Wealthion Macro Bites 12/22/25

Federal Reserve Bank of Cleveland President Beth Hammack told the WSJ on Sunday Hammack said the Fed will not need to change the fed funds rate target range from 3.5%-3.75% until at least spring.  Hammack has dissented from recent rate cuts noting she is more concerned about elevated inflation than labor-market fragility.  “My base case is that we can stay here for some time, until we get clearer evidence that either inflation is coming back down to target or the employment side is weakening more materially”

Japan’s Niigata assembly voted on Monday as Japan’s final step in allowing the world's largest nuclear power plant (Kashiwazaki-Kariwa) to resume operations.  Kashiwazaki (220 km NW of Tokyo) was among 54 reactors shut after the 2011 earthquake and tsunami which crippled the Fukushima Daiichi plant in the worst nuclear disaster since Chernobyl.  Since then, Japan has restarted 14 of the 33 reactors which remain operable. Kashiwazaki will be the first operated by Fukushima operator Tokyo Electric Power Co (TEPCO). 

Japanese Prime Minister is planning large fiscal stimulus including energy subsidies and cash handouts for households.  Concerns over a new round of debt-fueled stimulus (which is how Japan ended up with government debt at 240% of GDP) continue to roil Japanese debt markets, with 10-yr. JGB yield touching 2.07% (highest since ’07); 20-yr. yield @ 3.00% (highest since ’98); 30-yr. yield @ 3.42% (highest since ’07 debut) and 40-yr. yield @ 3.72% (highest since ’90 debut).

Euro Stoxx 50 -0.15%, S&P futures +0.35% and Nasdaq futures +0.6%.  DXY dollar index -0.15%, spot gold +1.6% ($4,410/oz. new all-time high) and spot silver +2.6% ($68.90/oz. new all-time high).